'My card let me down when overseas'

Hundreds of thousands of families holidaying abroad could have their credit cards rejected by shops, bars and restaurants this summer as banks engage in an unprecedented crackdown against credit card fraud, which cost £207m last year.

Stalled: Scooter fan David Blythe was left high and dry overseas

UK holidaymakers look set to withdraw a record £7bn from overseas cash machines this year and spend up to £18bn more with their cards during a foreign break, according to payments association Apacs.

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In one recent example, dozens of UK-based Lambretta scooter riders travelling to a rally in Sweden last month found that both their debit and credit cards were being rejected by petrol stations, restaurants and shops there and in Denmark.

In many cases, several cards were refused in rapid succession, leaving their owners to borrow cash from friends to continue their journey. Among those rejected were Barclaycard, LV (formerly Liverpool Victoria), Capital One and First Direct.
David Blythe, an accountant from Cheam, in Surrey, was among those whose Barclaycard was rejected.

When the group arrived at the campsite in Sweden, they found scores of other scooter riders from the UK had been similarly affected.

He says: 'It was highly embarrassing, not just in the restaurant and petrol stations, but also with friends. It makes you look like a scrounger when you borrow money.

'What really annoys me is that before leaving the UK, I told Barclaycard I would be travelling through Denmark and Sweden and on what dates. But when I rang them to find out why my card was being rejected, they claimed there was no problem.'

The card companies' tough stance comes amid growing evidence of card fraud abroad. While the introduction of chip and pin cards has slowed the growth in the amount of credit card fraud in the UK, many other countries do not use this system.

As a result, total losses from card fraud abroad rocketed by more than 85% in the 12 months to 2007 to £207m. At £532m, total fraud against UK cardholders is higher than it has ever been.

In countries that do not use chip and pin, criminals can skim a card and counterfeit it, using an old- style magnetic strip to pay for purchases. The card can then be used abroad, especially in Italy and the U.S., which has no plans to implement chip and pin.

A Barclaycard spokesman denied it is targeting holidaymakers. 'Our security systems are now more sophisticated in identifying patterns of suspicious transactions.

'If in one week you have been using your credit card to shop in a certain supermarket and the next you are in Sweden paying for petrol several times in one day, that will show totally different spending patterns. Our systems will pick up on that.'

He added that in the future Barclaycard will be asking all its cardholders to tell them when and when they are planning to go away.

It also wants cardholders to give them a mobile number where they can be reached so that it can clarify any potentially dubious transactions. The major banks already ask you to do this. However, an Apacs spokeswoman said there is no universal requirement for holidaymakers to tell their card company before they go abroad: 'Some see it as important, but others don't. I don't tell my card provider when I'm going on holiday,' she admits.

She adds: 'It seems issuers are looking at people's transactions and making decisions based on what they see happening in each individual case.'

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There is no industry standard on whether you should tell your credit card or current account provider before you go overseas — some ask you to, others prefer you not to.
However, even if you do, this is no guarantee that your card will not be stopped if you try to withdraw money from a cash machine or make a large purchase.
Evidence suggests banks and building societies are stopping an increasing number of transactions.

It can be embarrassing having a card refused in a store, and confusing if you and the shop assistant don't speak the same language.
If you are in a store or restaurant, the assistant is supposed to call your bank and put you on the phone for you to authorise the transaction.

However, many cannot be bothered and will simply ask for another method of payment. If you have a cash machine transaction blocked, often the bank will call you. Most banks have systems that will mean you are called quickly.
A spokesman for Lloyds TSB says: 'This is why we ask customers to keep their contact details as up-to-date as possible.'

Most will call you on your mobile phone. If you don't have one, or don't have it with you, it will be your responsibility to call your bank by dialling the 24-hour hotline number on the back of your card — these are all UK local numbers.

Once you are connected, ask the bank to call you back.
Receiving and dialling UK phone numbers on a mobile when you are overseas can cost up to 75p a minute.
Some of the phone calls from banks are on automated systems, so you cannot speed up the message.
• Tell us if you've had problems using a credit or debit card overseas. Has your card been rejected? Did your bank call you and did they refund the call charges? E-mail j.coney@dailymail. co.uk or write to James Coney at Money Mail, Daily Mail, Northcliffe House, Derry Street, London W8 5TT.

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